Post on 13-Jan-2017
PREDICTIVE INNOVATION METRICS DATA-DRIVEN INNOVATION AS A REPEATABLE PROCESSFOR LARGE AND MEDIUMCOMPANIES
+ANDERSEN & ASSOCIATESCORPORATE INNOVATION & GROWTH THROUGH ENTREPRENEURSHIP + SCIENCE
YOU@PLUSANDERSEN.COM
– Steve Blank
“INNOVATION WON’T COME FROM PLANS OR PEOPLE OUTSIDE YOUR
COMPANY – IT WILL BE FOUND IN THE PEOPLE YOU ALREADY HAVE INSIDE
WHO UNDERSTAND YOUR COMPANY’S STRENGTHS AND ITS
VULNERABILITIES”
ABOUT VIDAR ANDERSEN
FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
• NORWEGIAN LIVING IN COLOGNE, DE SINCE 2005
• WORKING WITH F500 CORPORATIONS AND GOS SOLVING PROBLEMS WITH TECHNOLOGYSINCE 1996
• SERIAL STARTUP FOUNDER & ENTREPRENEUR WITH HITS & MISSES
• EDUCATOR (UNIVERSITY LECTURER ON STARTUP ENTREPRENEURSHIP, STARTUP NEXT INSTRUCTOR & CERTIFIED LEAN LAUNCHPAD EDUCATOR @ STANFORD)
+20 YEARS EXPERIENCE
TEACHING AT E.G.
ANDERSEN FOUNDED E.G.
FEATURED & RECOGNIZED
“[Vidar Andersen] one of the most important persons in the German startup scene.” –
Wirtschafts Woche, April 2015
CERTIFIED LEAN LAUNCHPAD (LLP)EDUCATOR @STANFORD
LLP LECTURE MARCH 2015 @ QAZVIN ISLAMIC AZAD UNIVERSITY, IRAN
PREDICTIVE INNOVATION METRICS FOR THE FUTURE
METHODOLOGIES, METRICS AND MANAGEMENT TOOLS FOR PREDICTABLE CONTINUOUS INNOVATION AS A PROCESS
1. METHODOLOGIES
TIME
SALES
HORIZON 1
HORIZON 2
HORIZON 3
MATURE BUSINESS RAPIDLY GROWING BUSINESS EMERGING BUSINESS
FOCUS
OUTPUT
EXECUTING TO DEFEND, EXTEND, AND INCREASE PROFITABILITY OF EXISTING BUSINESSES
ANNUAL PLANNING AND FORECASTING; DETAILED PLANS FOR GROWTH THROUGH ADJACENCIES
RESOURCING INITIATIVES TO BUILD NEW BUSINESSES
BUSINESS BUILDING STRATEGIES: INVESTMENT, BUDGET, DETAILED BUSINESS PLANS FOR NEW VENTURES
UNCOVERING OPTIONS FOR FUTURE OPPORTUNITIES AND PLACING BETS ON SELECTED OPTIONS
DECISIONS TO EXPLORE; INITIAL PROJECT PLAN, PROJECT MILESTONES
SOURCE: BAGHAI, COLEY, WHITE
H1: KNOWNH2: PARTIALLY KNOWN
H3: UNKNOWN
METHODOLOGY FOR HORIZON 1
INNOVATIONS
PRODUCT MANAGEMENT
GATE 1STAGE 1
GATE 2STAGE 2
GATE 3STAGE 3
GATE 4STAGE 4
GATE 5STAGE 5
PROCESS INNOVATION
HORIZON 1 EXTEND THE CORE
USE TRADITIONAL METHODOLOGIES FOR HORIZON 1 PROJECTS
IDEA SCREEN
SCOPING
SECOND SCREEN
BUILD BUSINESS CASE
GO TO DEVELOPMENT
DEVELOPMENT
GO TO TESTING
TESTING & VALIDATION
GO TO LAUNCH
LAUNCH
H1 AND H2-3 INNOVATION ARE MUTUALLY EXCLUSIVE
H1 EXECUTE
SEARCHH2 & 3
BUT YOU HAVE TO DO BOTHDISRUPT OR BE DISRUPTED
DOING H1 AND H2-3 INNOVATION WITHIN SAME STRUCTURE FAILS
SUSTAINING
DISRUPTIVEOUTSIDE OF DAILY OPERATIONS
INSIDE OF DAILY OPERATIONS
H2 & 3 RUN AND MANAGED AS COMPLETELY SEPARATE PROCESS
BUT WITH A TRANSPARENT WAY FOR EMPLOYEES TO GO BACK AND FORTH
OPERATIONS
INNOVATIONSNEED NEW KPI & MANAGEMENT TOOLS
PRODUCT MANAGEMENT & ADMINISTRATION
METHODOLOGIES FOR HORIZON 2 & 3
INNOVATIONS
1. METHODOLOGIES
BUSINESS MODEL GENERATION
CUSTOMERDEVELOPMENT
AGILE ENGINEERING+ +
THE
LEAN
STARTUP HORIZON 3 DISRUPTS THE CORE
2. PROCESS
EVIDENCE-BASED, DATA-DRIVEN PROCESS
OUTSIDEWORK MEETUPS MENTORING
VIDEO LECTURESWRITTEN MATERIALCUSTOMER INTERVIEWS EXPERIENCE-BASED
DISCUSSIONS - INSIGHTS ADDITIONAL LECTURESACCOUNTABILITYFEEDBACK, PEER REVIEW
DURING MEETUPS BETWEEN MEETUPS WITH EXPERIENCEDENTREPRENEURS
THE LEAN LAUNCHPAD (LLP)
LLP +3.000 TEAMS WORLD WIDE
• THE LEAN LAUNCHPAD CURRICULUM
• NATIONAL SCIENCE FOUNDATION’SINNOVATION-CORPS
• +200 UNIVERSITIES WORLD WIDE
• +40 ACCELERATORS / INCUBATORS
• FORTUNE 500 CORPORATIONS
IN EUROPE WITH +ANDERSEN
LLP @ UNIVERSITY OF COLOGNE (ONE OF 4 GERMAN ELITE UNIVERSITIES) GLOBAL CORPORATIONS
LLP - TRAINING +300 EDUCATORS A YEAR
• LEAN LAUNCHPAD EDUCATORS TRAINING & CERTIFICATIONS
• STANDARDIZED PROCESS & CURRICULUM
• STANDARDIZED, VALIDATED TRAINING & CERTIFICATION
• HELD AT STANFORD, BERKELEY, COLUMBIA AND MORE ON A REGULAR BASIS
• MORE INFO AT NCIAA.ORG/LLP
THE NATIONAL SCIENCE FOUNDATION (NSF) IS A UNITED STATES GOVERNMENT AGENCY THAT SUPPORTS FUNDAMENTAL RESEARCH AND EDUCATION IN ALL THE NON-MEDICAL FIELDS OF SCIENCE AND ENGINEERING
THEY DECIDE WHICH PUBLIC SCIENTIFIC RESEARCH PROJECTS WILL GET FEDERAL FUNDING FOR COMMERCIALIZATION IN THE US
BUDGET: $7B ANNUALLY
NSF'S iCORPS ACCELERATOR PROGRAM WENT FROM A 18% TO A +60% FUNDING RATE OF PROJECTS AFTER REQUIRING APPLICANTS TO TAKE THE LEAN LAUNCHPAD AS A PREREQUISITE FOR FUNDING & USING LAUNCHPAD CENTRAL AS THE MANAGEMENT TOOL
THE LEAN LAUNCHPAD ENABLES YOU TO GO FASTER: 10X THE NUMBER OF INITIATIVES IN 1/5 THE TIME COMPARED TO TRADITIONAL INNOVATION - THAT’S A 50X SPEEDUP KIND OF FAST
2. EVIDENCE BASED PROCESS
BUSINESS MODEL GENERATION
CUSTOMERDEVELOPMENT
AGILE ENGINEERING
HYPOTHESES EXPERIMENTS DATA
METHODOLOGIES (THEORY)
+ +
MENTORSHIP
LEAN LAUNCHPAD CURRICULUM
3. TOOLS & METRICS
INNOVATION MANAGEMENT TOOL
GATHERS & TRACKS DATA ON HYPOTHESES, PIVOTS, MVPS, METRICS EVIDENCE & TRAJECTORY
3. INNOVATION MGMT TOOL
WEEKLY PROGRESS
EXPERIMENTSCORECARD
DATA, TRAJECTORY EXPERIMENTS,
READINESS LEVEL+ =
BUSINESS MODEL GENERATION
CUSTOMERDEVELOPMENT
AGILE ENGINEERING
HYPOTHESES EXPERIMENTS DATA
METHODOLOGIES (THEORY)
EVIDENCE BASED PROCESS
+ +
MENTORSHIP
KPI
FIND FILTER FUNDEARLY STAGE
POTENTIAL
RIGOROUS TESTING AND VALIDATION TO FILTER IDEAS
INNOVATION VENTURES RIPE
FOR INVESTMENT
COHORT LEADERBOARD
ALL COHORTS (SIMULTANEOUS TEAMS, PROJECTS, IDEAS)
CUSTOMER INTERVIEWS
HYPOTHESES TO TEST
INVALIDATED HYPOTHESES
WEEKLY CANVAS UPDATES
TRACK ALL HYPOTHESES TESTING
SCORECARD: 9 WAY KANBAN BOARD, DATA
ADVANCED DATA MINING
WHAT TO DO WITH ALL THIS DATA?
INTRODUCING A METRIC FOR INNOVATION READINESS LEVEL
NASA/DOD TRL:TECHNOLOGY READINESS LEVEL
• FORMAL WAY TO ASSESS TECHNOLOGY PROJECT MATURITY
• QUANTIFY RELATIVE RISKS
• DATA DRIVEN
• ADOPTED BY NASA, DOD, FAA, ESA AND SO ON
• INTRODUCED IN 1974 BY NASA JPL
• ALSO SEE: HTTP://WWW.WIKIWAND.COM/EN/TECHNOLOGY_READINESS_LEVEL TRL 1
TRL 2
TRL 3
TRL 4
TRL 5
TRL 6
TRL 7
TRL 8
TRL 9
NASA/DOD TECHNOLOGY READINESS LEVEL 1 & 2
BASIC TECHNOLOGY RESEARCH:
• BASIC PRINCIPLES OBSERVED
• TECHNOLOGY CONCEPT FORMULATED
CONCEPTTRL 1
TRL 2
TRL 3
TRL 4
TRL 5
TRL 6
TRL 7
TRL 8
TRL 9
NASA/DOD TECHNOLOGY READINESS LEVEL 3 & 4
RESEARCH TO PROVE FEASIBILITY:
• EXPERIMENTAL PROOF OF CONCEPT
• BREADBOARD VALIDATION IN LABRESEARCH
TRL 1
TRL 2
TRL 3
TRL 4
TRL 5
TRL 6
TRL 7
TRL 8
TRL 9
CONCEPT
NASA/DOD TECHNOLOGY READINESS LEVEL 5 & 6
DEMO PROTOTYPE:
• BREADBOARD VALIDATION OUTSIDE OF BUILDING
• SYSTEM DEMO IN REAL WORLD
DEMO
TRL 1
TRL 2
TRL 3
TRL 4
TRL 5
TRL 6
TRL 7
TRL 8
TRL 9
RESEARCH
CONCEPT
NASA/DOD TECHNOLOGY READINESS LEVEL 7, 8 & 9
DEPLOYMENT:
• SYSTEM DEVELOPMENT
• SYSTEM DEVELOPMENT IN REAL WORLD
DEPLOYMENT
TRL 1
TRL 2
TRL 3
TRL 4
TRL 5
TRL 6
TRL 7
TRL 8
TRL 9
CONCEPT
RESEARCH
DEMO
WHAT DOES THIS MEAN FOR AN INNOVATION METRIC?
INTRODUCING THE INNOVATION READINESS LEVEL KPI
INNOVATION READINESS LEVEL
• WE CAN DO THE SAME FOR NEW INNOVATION VENTURES
• EMPHASIS IS ON DATA
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
INNOVATION READINESS LEVEL
• A FORMAL WAY TO QUANTIFY RELATIVE RISK
• DATA DRIVEN
• ANALOG TO NASA/DODTECHNOLOGY READINESS LEVEL (TRL)
• ADAPTABLE TO YOUR INDIVIDUAL CORPORATE GOALS, URGENCY, VERTICALS AND RISK AVERSION (I.E. RELATIVE NOT ABSOLUTE SCALE)
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
INNOVATION READINESS LEVEL 1 & 2
HYPOTHESES:
• VALUE PROPOSITIONS SUMMARIZED
• BM CANVAS HYPOTHESES ARTICULATED
HYPOTHESESIRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
INNOVATION READINESS LEVEL 3 & 4
PROBLEM / SOLUTION FIT:
• PROBLEM SOLUTION FIT
• LOW FIDELITY MVP PROBLEM /SOLUTION
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
HYPOTHESES
INNOVATION READINESS LEVEL 5 & 6
VALIDATE:
• PRODUCT / MARKET FIT
• RIGHT SIDE OF BUSINESS MODEL CANVAS
• VALUE PROPS, CUSTOMER SEGMENTS, CHANNELS, CUST REL & REVENUE SOURCES
PRODUCT/MARKET
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
PROBLEM /SOLUTION
HYPOTHESES
INNOVATION READINESS LEVEL 7 & 8
VALIDATE:
• LEFT SIDE OF BUSINESS MODEL CANVAS
• ACTIVITIES, RESOURCES, PARTNERS & COSTS
VALIDATE LEFT BMC SIDE
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
PRODUCT/MARKET
PROBLEM /SOLUTION
HYPOTHESES
INNOVATION READINESS LEVEL 9+
METRICS THAT MATTER
METRICS THATMATTER
• SALES & REVENUE METRICS
• USER & CUSTOMER GROWTH METRICS
• ENGAGEMENT METRICS
• COHORT, FUNNEL, ATTRITION & CHURN METRICS
• ETC
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
PRODUCT/MARKET
PROBLEM /SOLUTION
HYPOTHESES
VALIDATE LEFT BMC SIDE
IRL 1
IRL 2
IRL 3
IRL 4
IRL 5
IRL 6
IRL 7
IRL 8
IRL 9
INNOVATION READINESS LEVELIDENTIFY AND VALIDATE METRICS THAT MATTER VALIDATE VALUE DELIVERY (LEFT CANVAS SIDE) PROTOTYPE HIGH-FIDELITY MVP VALIDATE REVENUE MODEL (RIGHT CANVAS SIDE) VALIDATE PRODUCT-MARKET FIT PROTOTYPE LOW-FIDELITY MVP PROBLEM-SOLUTION VALIDATION MARKET SIZE & COMPETITIVE ANALYSIS COMPLETE FIRST-PASS OF BUSINESS MODEL CANVAS
COMBINING IT ALL FOR HORIZON 3
INNOVATIONS
BUSINESS MODEL GENERATION
CUSTOMERDEVELOPMENT
AGILE ENGINEERING
HYPOTHESES EXPERIMENTS DATA
WEEKLY PROGRESS
EXPERIMENTSCORECARD
DATA, TRAJECTORY EXPERIMENTS,
READINESS LEVEL
1. METHODOLOGIES
3. EVIDENCE BASED PROCESS (LLP)
3. INNOVATION METRIC & MANAGEMENT TOOL
+ +
+ =
MENTORSHIP
THE LEAN
STARTUP
H3 INNOVATION ENGINEIRL 0-3 IRL 4-6 IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS 3-6 MONTHS
GATE
1 GATE
2 GATE
3 GATE
4 GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE &
MVP
PERPETUAL 2 DAYS
∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
LAUNCHPAD CENTRAL: CENTRAL MANAGEMENT TOOL • INVESTMENT READINESS LEVEL (KPI) • TRAJECTORIES • DISCOVERY NARRATIVES + KNOWLEDGE MANAGEMENT • BIG DATA / METRICS / PATTERNS (TODAY + HISTORICAL) • DATA-DRIVEN PREDICTIVE DECISION MAKING TOOL
THE PROCESS’ BENEFITS: •TIME & RESOURCES INDIFFERENT • INNOVATION TYPE AGNOSTIC • LOW MAINTENANCE & MANAGEMENT • SELF-SERVICED & SELF-SELECTING • INTRINSIC MOTIVATION & KNOWLEDGE TRANSFER
OVER-ARCHING STRATEGY: • LOTS OF SMALL BETS • GATED RISK REDUCTION • GATED QUALITY ASSURANCE • DATA-DRIVEN DECISION MAKING • AS A PERPETUAL SCALABLE PROCESS
H3 INNOVATION AS A PROCESS
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
DEALFLOW• THE STREAM OF OFFERS OR OPPORTUNITIES AS A
COLLECTIVE WHOLE (IDEAS & PEOPLE)
• AN ORGANIZATION'S DEAL FLOW IS CONSIDERED "GOOD" IF IT RESULTS IN ENOUGH OPPORTUNITIES TO KEEP THE ORGANIZATION FUNCTIONING AT PEAK CAPACITY
• THE MOST SUCCESSFUL VENTURE CAPITAL FIRMS REGULARLY RECEIVE HUNDREDS OF PROPOSITIONS EACH MONTH
• FROM AMONG THESE, IT IS NOT UNUSUAL TO FUND AND SUPPORT ONLY 0.25%–0.5% OF TOTAL DEAL FLOW
• BY MANY ESTIMATES, ONLY 3% OF PEOPLE ARE FOUNDERS
1972
OPEN INNOVATION
HACKATHONS
CHALLENGES
IDEA BOX
KICKBOX
VENTURE FEST
EXTERNAL
INTERNAL
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
VETTING CHECKPOINT• VENTURE CAPITALIST INVITE VETTED PROSPECTIVE
OPPORTUNITIES TO PITCH THE SENIOR STAKEHOLDERS BEFORE AN INVESTMENT DECISION IS MADE
• QUALCOMM VENTURE FEST (2006, CORPORATE)
• STARTUP WEEKENDS (2007, CIVILIAN)
• SELF-SELECTION, TEAM COMPLETION
• PERFORMANCE UNDER PRESSURE MEASURED
• GOAL: VERIFICATION OF PEOPLE + IDEA (REAL VS FANTASY), IDENTIFY TEAM AUGMENTATION NEEDSEXTERNAL HR
INTERNAL HR
STARTUP BOOTCAMP @ DEUTSCHE TELEKOM
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
PRE-ACCELERATION• THE LEAN LAUNCHPAD,
EVIDENCE BASED PROCESS FROM STANFORD& BERKELEY 2012
• CAME INTO EXISTENCE TO IMPROVECAPABILITY OF STARTUP ENTREPRENEURS ANDPERFORMANCE OF FUNDED STARTUPS
• EVIDENCE, DATA AND EXPERIENCE DRIVENBY GOING OUTSIDE OF THE BUILDING
• MENTOR DRIVEN
• REDUCES RISK, INCREASES PERFORMANCEBEFORE MORE RESOURCES ALLOCATED, BEFORE ALL-IN PHASE
• GOAL: PROBLEM-SOLUTION FIT
LLP @ DEUTSCHE TELEKOM
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
• PROTO-ACCELERATORYCOMBINATOR, 2005
• CREATED TO SUPPORT MORE EARLY-STAGE VENTURES & FIRST TIMERS
• ALL-IN PHASE: THE INNOVATION COLONY
• REMOVED FROM BUSINESS AS USUAL
• RESOURCES & 100% TIME ALLOCATED
• MENTOR DRIVEN
• TYPICALLY 3 MONTHS PHASE
• GOAL: PRODUCT-MARKET FIT
ACCELERATION
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
• LAUNCHPAD CENTRAL, FOUNDED 2012
• KNOWLEDGE MANAGEMENT
• DEALFLOW MANAGEMENT
• AUTOMATED ON-BOARDING
• COHORT PROGRESS MONITORING
• INNOVATION READINESS LEVEL KPI
• PERFORMANCE METRICS, DECISION MANAGEMENT
MANAGEMENT TOOL
H3 INNOVATION AS A PROCESSIRL 0-3
IRL 4-6IRL 9+IRL 7-8
• SPIN IN? • SPIN OUT? • KILL? • EXTEND?
5 OR 12 WEEKS
3-6 MONTHS
GATE
1
GATE
2GATE
3
GATE
4
GATE
5
PROBLEM /NEED-FIT
STAGE
SOLUTION-FIT STAGE
PERPETUAL
2 DAYS∞ IDEAS AT ANY TIME
MANAGEMENT TOOL
PRODUCT-MARKET FIT
STAGE
COMPANY BUILDING
STAGE
CUSTOMER CREATION
STAGE
TEAM FORMATION
STAGE
DISCOVER EXPLOITVALIDATE EXPLORE
TIME
ALL-HANDS STAKEHOLDER PRESENTATIONS
• SPIN IN? (CAN IT BE ADOPTED ALREADY?)
• SPIN OUT? (BURN SHIPS CONTRACT?)
• EXTEND? (GIVE MORE TIME?)
• KILL? (END NOW, PEOPLE GO BACK INTO THE OFFICE)
DECISION DAY
CYCLE #1 CYCLE #2 CYCLE #3
ADAPTING PROGRAM CLEANING THE SLATE LEARNING WHAT WORKS IDENTIFYING TALENTS
IMPLEMENT CYCLE #1 LEARNING TRAIN THE TRAINER FIRST SELECTION PROCESS WITH A CLEAN SLATE
IMPLEMENT CYCLE #2 LEARNING RUN BY TRAINED TRAINER EXTERNAL SUPERVISES
ROADMAP TO OWNING YOUR INNOVATION AS A PROCESS
HOW TO START AN INNOVATION ENGINE 0
• REORGANIZE AROUND MISSION AND INNOVATION
• EACH HORIZON 1 DIVISION NEEDS A CHIEF INNOVATION OFFICER- DRIVES CONTINUOUS INNOVATION - FINDS HORIZON 2 OPPORTUNITIES- STARTS AND FUNDS 10X THE NEW INITIATIVES FOR MVPS
• EACH COMPANY NEEDS A DEPUTY DIRECTOR OF INNOVATION- RUNS AND FUNDS HORIZON 3 INCUBATORS AND ACCELERATORS WITH THE LLP METHODOLOGY- RUNS OPEN INNOVATION INCUBATORS- PROVIDES STAFF AND INFRASTRUCTURE SUPPORT FOR DIVISIONAL INNOVATION
HOW TO START AN INNOVATION ENGINE 1
• IDENTIFY LEAN INNOVATION VEHICLES- R&D, ENGINEERING, INCUBATORS, CAFÉS, ACCELERATORS, HACKATHONS, STARTUP DAYS, OPEN INNOVATION, ETC
• ADOPT LEAN PRODUCT DEVELOPMENT
• ADOPT LEAN METRICS, HYPOTHESES TESTED, PIVOTS, IRL, TRL
• ADOPT LEAN FUNDING AND ACQUISITION
• ADOPT LEAN PEDAGOGY: THE LEAN LAUNCHPAD
• USE LEAN MANAGEMENT PROCESSES- AGREE HOW TO HAND-OFF AND SCALE SMALL EFFORTS- DEVELOP ORGANIZATIONAL PROCESSES AND PROCEDURES AND INCENTIVES THAT SUPPORT INNOVATION
HOW TO START AN INNOVATION ENGINE 2
• EDUCATE THE COMPANY ON INNOVATION- COMMUNICATE GOALS- COMMUNICATE PROCESS- CONSOLIDATE INNOVATION EFFORTS- RECRUIT TEAMS (3-4 PEOPLE)- RECRUIT MENTORS (1 PER TEAM)- GET DIVISIONAL COOPERATION- TRAIN THE TRAINERS
HOW TO START AN INNOVATION ENGINE 3
• DESIGN PROGRAM- EMPHASIS ON SPEED, URGENCY, EVIDENCE, PIVOTS- DEAL FLOW - STARTUP DAYS- 2-DAY TRAIN THE TRAINERS PROGRAM- 5-12 WEEK LEAN LAUNCHPAD PROGRAMS- ACCELERATION PHASE- INVESTMENTS AND ADOPTION OF H1 AND H2 BY DIVISIONS
• RUN PROGRAM
HOW TO START AN INNOVATION ENGINE 4
• RALLY AROUND MISSION NOT THEORY
• PICK SOMETHING EVERYONE AGREES IS A GOOD GOAL AND CONGRUENT WITH THE COMPANY’S MISSION
• LEGITIMATIZE THE NEED FOR EXPLORATION AND EXPLOITATION
HOW TO START AN INNOVATION ENGINE 5
• LEADERSHIP THAT IS CAPABLE OF MANAGING THE ISSUES ASSOCIATED WITH MULTIPLE SIMULTANEOUS HORIZONS- RESOURCE ALLOCATION- INCENTIVES- ETC
• NEEDS TO BALANCE A CULTURE OF RISK TAKING, SPEED = MITIGATION, QUICK TO OPPORTUNITIES, RECEPTIVE TO INNOVATION
+ANDERSEN & ASSOCIATESCORPORATE INNOVATION & GROWTH THROUGH ENTREPRENEURSHIP + SCIENCE
YOU@PLUSANDERSEN.COM
+ANDERSEN & ASSOCIATESHELPING LARGE COMPANIES INNOVATE LIKE STARTUPS SINCE 2013, SOME OF THE THINGS WE PROVIDE ARE:
•INNOVATION AS A PROCESS
•EDUCATION & TRAINING
•INNOVATION COLONIES
•TURNKEY READY PROGRAMS
•ROOM TO EXPERIMENT
+ANDERSEN & ASSOCIATES
INNOVATION AS A PROCESS • PREDICTABLE, REPEATABLE AND SCALABLE USING YOUR
OWN EMPLOYEES AND RESOURCES
+ANDERSEN & ASSOCIATES
EDUCATION & TRAINING • TRAIN YOUR EMPLOYEES TO FLEX THEIR
ENTREPRENEURIAL MUSCLE AND DISCOVER YOUR TOP TALENTS TO TRAIN AS TRAINERS OR PREPARE FOR THE POSITION OF VP OF INNOVATION THROUGH OUR PROGRAM
+ANDERSEN & ASSOCIATES
INNOVATION COLONIES
• GET OUT OF THE BUILDING: EXTERNAL INCUBATION & ACCELERATION ZONES, FOR PERMANENT OR TEMPORARY CO-LOCATION
+ANDERSEN & ASSOCIATES
TURNKEY READY PROGRAMS
• PROVEN PROGRAMS PERFECT TO START WITH TESTING NEW APPROACHES OUTSIDE OF YOUR ORGANIZATION WITHOUT INITIATING TOO MUCH RED TAPE, COMMITTING TOO MUCH RESOURCES AND ROCKING TOO MANY BOATS
+ANDERSEN & ASSOCIATES
ROOM TO EXPERIMENT
• TRY OUT DIFFERENT THINGS TO FIND OUT WHAT WORKS FOR YOUR COMPANY OUTSIDE OF IT BEFORE YOU IMPLEMENT IT INSIDE TO MINIMIZE DOWNSIDE AND RISK
PATRIZIA TOWER, COLOGNE
COLOGNE MEDIA PARK
SPARK CITY, HERLEEN NL
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